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 DEERFIELD, Ill., July 28 /PRNewswire/ -- Gaylord Container Corporation (AMEX: GCR) had a net loss of $24.0 million, or $0.45 per share, for the third quarter of fiscal 1993 ended June 30, 1993, compared with a net loss of $32.9 million, or $2.13 per share, for the third quarter of fiscal 1992, it was announced today.
 Net sales totaled $188 million for the third quarter of fiscal 1993, down slightly from $190 million for the third quarter of fiscal 1992. The company had an operating loss of $2.9 million for the current quarter compared with an operating loss of $4.1 million in the year-ago third quarter. The company said that per-share amounts were calculated based on 53.4 million shares and 15.5 million shares outstanding for the third quarter of fiscal 1993 and fiscal 1992, respectively. The increase in fiscal 1993 was due to the additional shares issued in the company's restructuring completed in November 1992.
 Commenting on the quarter, Chairman and Chief Executive Officer Marvin A. Pomerantz said, "Increased mill production, record corrugated shipments and higher multiwall bag shipments had a positive impact on operating earnings of approximately $4 million vs. the third quarter a year ago. The benefit from the volume gains, however, was more than offset by continued pressure on product pricing, which reduced operating earnings by approximately $13 million."
 The company noted that operating earnings in the third quarter a year ago were adversely affected by $3 million of restructuring expenses and $10 million associated with the acquisition and consolidation of two joint ventures.
 Net interest expense declined by $7 million to $21.8 million in the third quarter of fiscal 1993 primarily due to lower outstanding debt levels and lower interest rates compared with the prior year. During the current quarter, the company completed a $525 million public debt offering. Proceeds from the offering were used to prepay $70 million of bank debt and to redeem approximately $390 million principal amount of debt securities at 100 percent of principal amount plus accrued interest to the redemption date. Interest expense for the current quarter includes approximately $5 million related to the redemption and the write-off of deferred financing fees.
 For the nine months ended June 30, 1993, the company had net income of $150.7 million, or $3.10 per share, which included a $201.5 million extraordinary gain on the restructuring of subordinated debt recorded in the first quarter of fiscal 1993. For the same nine-month period a year ago, the company had a net loss of $78.4 million, or $5.06 per share. Net sales for the first three quarters of fiscal 1993 totaled $546 million, compared with $536 million for the first three quarters of fiscal 1992. The company had an operating loss of $0.6 million for the first nine months of fiscal 1993, compared with operating earnings of $6.7 million for the same period a year earlier.
 Operating Results
 During the third quarter of fiscal 1993, the company produced 275,000 tons of containerboard, a 3 percent increase from 266,100 tons a year ago. Unbleached kraft paper production increased 5 percent to 60,300 tons, compared with 57,300 tons in the third quarter of fiscal 1992. Corrugated container shipments increased 14 percent to approximately 3.2 billion square feet with approximately three quarters of the increase due to the acquisition of two sheet feeder plants. Multiwall bag shipments rose to approximately 53.1 million bags, and grocery bag and sack shipments declined to 31,900 tons.
 Gaylord Container Corporation is a major national manufacturer and distributor of corrugated containers, containerboard, unbleached kraft paper, multiwall bags and grocery bags and sacks.
 Selected Financial and Operational Data
 Third Quarter Nine Months
 Pct. Pct.
 Periods ended Incr./ Incr./
 June 30 1993 1992 (Decr.) 1993 1992 (Decr.)
 Financial Summary
 (In millions of
 dollars, except
 per-share amounts)
 Net sales $188.0 $190.0 (1.1) $546.3 $535.9 1.9
 Debt restructuring
 expenses -- 3.0 N/M 8.6 9.0 (4.4)
 Operating earnings
 (loss) (2.9) (4.1) N/M (0.6) 6.7 (109.0)
 Interest expense-net 21.8 28.8 (24.3) 49.3 84.9 (41.9)
 Loss before extraord.
 item and accounting
 change (24.0) (32.9) N/M (49.5) (78.4) N/M
 Extraordinary gain -- -- -- 201.5 -- N/M
 Accounting change(A) -- -- -- (1.3) -- N/M
 Net income (loss) (24.0) (32.9) N/M 150.7 (78.4) N/M
 Loss before extraord.
 item and accounting
 change per share $(0.45) $(2.13) N/M (1.01) (5.06) N/M
 Net income (loss)
 per share (0.45) (2.13) N/M 3.10 (5.06) N/M
 Weighted average
 common and common
 equivalent shares
 outstanding (B) 53.4 15.5 244.5 48.7 15.5 214.2
 Operating Summary
 Mill production
 (thousands of tons)
 Containerboard 275.0 266.1 3.3 855.4 809.3 5.7
 Unbleached kraft
 paper 60.3 57.3 5.2 180.8 167.3 8.1
 Corrugated shipments
 (billions of
 square feet) 3.2 2.8 14.3 8.7 7.6 14.5
 Multiwall bag shipments
 (millions of bags) 53.1 47.8 11.1 155.7 140.1 11.1
 Grocery bag and sack
 shipments (thousands
 of tons) 31.9 33.2 (3.9) 94.2 100.5 (6.3)
 (A) -- In the first quarter of fiscal 1993, the company adopted Financial Accounting Standard No. 106, "Accounting for Post-Retirement Benefits Other Than Pensions."
 (B) -- The weighted average share amounts for the fiscal 1993 periods reflect the approximately 37.8 million shares of Class A common stock issued on Nov. 2, 1992, pursuant to a restructuring. Of such shares, approximately 31.8 million are held by a trustee for issuance upon exercise of a like number of warrants.
 -0- 7/28/93
 /CONTACT: Kathryn Chieger of Gaylord Container Corporation, 708-405-5645/

CO: Gaylord Container Corporation ST: Illinois IN: PAP SU: ERN

CK-OS -- NY034 -- 6800 07/28/93 14:16 EDT
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Publication:PR Newswire
Date:Jul 28, 1993

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